APX Lending: Overview
APX Lending is a fintech company that offers crypto-backed loans, allowing borrowers to use their Bitcoin (BTC) or Ethereum (ETH) as collateral, without the need to sell their assets. Rather than having to come up with collateral in traditional forms — like real estate or vehicles — borrowers can use their crypto to back their loans.
APX Lending operates in Canada and the US, and makes lending accessible to those with sub-par credit scores, as no credit checks are required.
Our Verdict
| Who Is APX Lending Best For? | - Crypto holders - Borrowers who want liquidity without selling their assets - Investors or businesses with crypto reserves - High-net-worth individuals |
| What We Like About APX Lending | - No credit check - No need to sell assets - Flexible loan features - On-chain transparency |
| What We Don’t Like About APX Lending | - Crypto volatility risk - No deposit insurance |
What Does APX Lending Offer?
APX Lending's main offering is crypto-backed loans, both for individuals and businesses. Borrowers can pledge their BTC or ETH as collateral and receive fiat or USDC loans.
Features
| Loan Terms | 3 - 60 months |
| Loan-To-Value (LTV) Ratio | 20% - 60% |
| Interest Rate | Fixed |
| Loan Amounts | CAD $10,000 (or USDC 25,000 in the US); no maximums |
| Credit Checks? | No |
| Collateral Required? | Yes, crypto used as collateral; held in segregated, insured cold storage |
| Currencies | Canadian funds in CAD or USDC; US funds in USDC |
| Funding Time | Usually within 24 hours |
| Funding Method | Wired to your bank account or USDC wallet |
| Fees | $0 origination; $0 management (APR = the rate) |
| Repayment Terms | Flexible; repay early or redraw anytime with no penalties |
| Availability | Canada & the US |
Qualifying With APX Lending
Qualifying for a loan with APX Lending is relatively straightforward and requires minimal criteria:
- Own Crypto: You must hold eligible crypto for collateral (Bitcoin or Ethereum).
- KYC / Identity Verification: You'll need to supply identity documents for Know-Your-Customer and anti-money-laundering (KYC/AML) checks.
- Accept Terms: You'll need to agree to the terms in the loan agreement, which defines liquidation triggers, interest, risks, etc.
| No Credit Checks Required Because APX doesn’t do credit checks, your credit score and history are not considered in qualification. |
How To Apply With APX Lending
To apply for a crypto-backed loan from APX Lending, follow these steps:
Step 1: Create An APX Lending Account
Create an APX account and complete the identity verification to confirm who you are before proceeding with a loan application.
Step 2: Find Out Your Loan Details
Set your loan data in the loan calculator to check your borrowing power (LTV, liquidation thresholds, loan amount) and click apply.
Step 3: Submit KYC & Identity Documents
Follow the identity verification steps to comply with KYC/AML checks.
Step 4: Transfer Your Collateral
Transfer your crypto to secure the loan. You will see the segregated cold-storage wallet information in-app.
Step 5: Get Funded
Most approved loan applicants are funded within 24 hours, either through wire transfer or deposit into a USDC wallet.
What We Like About APX Lending
There are several perks that come with APX Lending’s revolutionary crypto-backed loans, including the following:
- No Credit Checks: Loans are accessible even if your credit is weak.
- No Need To Sell Assets: You retain ownership and upside on your crypto assets with no need to sell.
- Flexible Loan Features: Take advantage of flexible redraw options, early repayment flexibility, and customizable loan terms.
- On-Chain Transparency: You'll have real-time visibility of your collateral directly on the blockchain.
- Regulatory Compliance: APX Lending operates under FINTRAC oversight, offering regulatory transparency among crypto lenders.
What We Think You Should Watch Out For
Although there are plenty of advantages of applying with APX Lending, there are a couple of potential risks to consider:
- Crypto Volatility Risk: Drops in Bitcoin or Ethereum value can trigger liquidation of collateral.
- No Deposit Insurance: Collateral is not protected by the Canada Deposit Insurance Corporation (CDIC) and Canadian Investor Protection Fund (CIPF).
Is APX Lending Safe?
Yes, APX Lending is safe. The crypto lending platform is recognized by the Canadian Securities Administrators (CSA), has active registrations under FINTRAC and FinCEN, and is SOC 2 compliant.
Collateral is securely stored in segregated cold storage wallets managed by BitGo Trust, backed by insurance coverage up to $250 million, and is never mixed or reused. Users can monitor their holdings on-chain anytime.
However, just keep in mind that your crypto is not protected by the CDIC or CIPF.
What Terms Does APX Lending Come With?
Not many lenders offer crypto-backed loans, though this appears to be a growing market. Here are just a few terms of APX Lending worth noting:
| APX Lending | |
| Crypto Accepted | BTC & ETH |
| Repayment Terms | Flexible; interest is charged on first 3 months if you prepay the entire loan (this covers the admin costs of provisioning the loan) |
| LTVs | - Origination and liquidation LTVs represent market highs & are competitive with DeFi lenders - The 90% liquidation LTV is highly protective of the consumer - A soft margin call is done at 80% LTV with 6-hour alerts thereafter |
| Support | Have your questions answered with APX Lending's knowledge base, or reach out to a representative through the online chat feature. |
| Calculator | Quickly estimate the details of your crypto loan with APX Lending’s online calculator. |
Final Thoughts
APX Lending can be a great option if you want to use your crypto as collateral for a loan without selling it. The firm promises transparency, is highly regulated, and utilizes a well-capitalized model. However, there's a risk that your collateral may need to be liquidated if it drops in value. Before borrowing, carefully weigh the benefits against the potential risks surrounding crypto-backed lending.
